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File No. 884.00/141.

The American Chargé d'Affaires to the Secretary of State.

No. 36, Paraguay.]

[Extract.]

AMERICAN LEGATION, Montevideo, July 26, 1912.

SIR: Complying with the Department's instruction No. 7, Paraguay Series, of June 3, 1912,1 I have the honor of submitting the following report upon the internal condition of Paraguay.

The Legation finds itself limited in the getting of information. Such as is contained in the press telegrams is often contradictory and meagre of detail. On the whole, however, the situation has improved.

Señor Schaerer, noted in my despatch of May 30, 1912 (Paraguayan Series 34) as being among the presidential possibilities, has been unanimously chosen by the Electoral College as President, in spite of the supposed opposition to him of the more intelligent vote. (See despatch referred to). The Vice President chosen is Señor Pedro Bobadilla.

The action of the Electoral College has, it appears, been upheld in both these elections by the opinion in the Provinces, through which Señor Schaerer has recently made a long trip on which he was enthusiastically welcomed.

* * *

Several of the late telegrams deal with the personnel of the new Government. The Cabinet officers are given as follows: Interior: Señor José Montero.

Public Industries: Señor Paiva.
Finance: Señor Zubizarreta.
War: Señor Gondra.

Foreign Affairs: Señor Ayala.

The President of the Assembly is Dr. Haeda. [Other appointments.] The new Paraguayan Chamber is to meet on Tuesdays, Thursdays, and Saturdays and a bill of some importance, in view of one or two American claims which Mr. Ferris notifies me are now on file at the Consulate in Asuncion, has recently been introduced providing for the creation of a special commission to sit upon the claims of damages arising from the war.

* * **

The most serious matter in Paraguay at the present moment appears to be the condition of the finances. The Minister of Finance announces a deficit of $22,000,000 paraguayan on the budgets of 1910, 1911, and the first quarter of 1912. This amount must be provided for in addition to a total of $5,000,000 for back salaries, an item which would seem to show that the internal peace of Paraguay is largely a question of finance.

I have [etc.]

RICHARD E. PENNOYER.

• Not printed.

File No. 884.001 Sch 1/1.

The Minister for Foreign Affairs to the Secretary of State.

No. 450.]

MINISTRY OF FOREIGN RELATIONS,
Asunción, August 17, 1912.

MR. MINISTER: I have the honor to enclose, with the customary copy, the autograph letter from His Excellency the President of the Republic, Don Eduardo Schaerer, to His Excellency the President of the United States of North America, informing him of his inauguration.

I beg you to be good enough to have the letter reach its high destination, and

I am [etc.]

J. MONTERO.

[Inclosure. Translation.]

The President of Paraguay to the President.

To His Excellency the President of the Republic of the United States of North America, General William Howard Taft.

GREAT AND GOOD FRIEND: I have the honor to inform Your Excellency that, called by the free vote of my fellow citizens, I have this day assumed the Chief Magistracy of the Republic, before the Honorable Congress of the Nation, thus inaugurating the constitutional term of my Government.

In so informing Your Excellency I take pleasure in adding that one of the principal solicitudes of my Government will be to maintain and, if possible, draw closer, the cordial relations that happily unite the Republic of Paraguay to the Nation whose affairs are directed by Your Excellency.

I am glad to take this occasion to express to you my sincere desire for the prosperity of the North American Nation and for the personal happiness of Your Excellency, and at the same time I assure you of my highest consideration and particular esteem.

José P. MONTERO.

ASUNCION, CAPITAL OF THE REPUBLIC OF PARAGUAY,

EDUARDO SCHAERER.

File No. 834.001 Sch 1/1.

August 15, 1912.

The Secretary of State to the Minister for Foreign Affairs.

DEPARTMENT OF STATE, Washington, November 29, 1912.

EXCELLENCY: I have the honor to acknowledge the receipt of your note of the 17th of August last, enclosing a letter, with office copy, addressed to the President of the United States by His Excellency Señor Don Eduardo Schaerer, announcing his elevation to the Chief Magistracy of Paraguay.

His Excellency's letter has been laid before the President, whose reply will be delivered to its high destination through the American Legation at Montevideo.

Accept [etc.]

P. C. KNOX.

File No. 834.001 Sch 1/1.

The Secretary of State to the American Chargé d'Affaires.

No. 12 Paraguay.]

DEPARTMENT OF STATE, Washington, December 17, 1912.

SIR: I enclose with office copy a letter addressed by the President to His Excellency Eduardo Schaerer, acknowledging His Excellency's letter of August 15 last in which he announced his election to the Chief Magistracy of the Republic of Paraguay, and his entrance upon the duties of the office.

You will forward the copy to the Foreign Office and deliver the original in the manner most agreeable to His Excellency. I am [etc.]

[Inclosure.]

P. C. KNOX.

The President to the President of Paraguay.

To His Excellency, Eduardo Schaerer, President of the Republic of Paraguay. GREAT AND GOOD FRIEND: I have received the letter of the 15th of August last, in which Your Excellency announced your election to the Chief Magistracy of the Republic of Paraguay, and your entrance upon the duties of the office.

I cordially reciprocate the sentiments you express for the continuance of the friendly relations which have heretofore existed between the United States and Paraguay, and I assure Your Excellency of my best wishes for your personal welfare and for the prosperity of the Republic over which you have been called upon to preside.

Your Good Friend,

By the President:

P. C. KNOX,

Secretary of State.

WASHINGTON, December 4, 1918.

WM. H. TAFT.

PERU.

SETTLEMENT OF BOUNDARY DISPUTE BETWEEN BOLIVIA AND PERU.1

File No. 723.2415/172.

The Minister of Peru to the Acting Secretary of State.

PERUVIAN LEGATION, Washington, May 8, 1912. SIR: I have the honor to inform you that a cable despatch from my Government, dated the 6th instant, advises the Legation that a protocol was signed at La Paz whereby the special commissions appointed to mark out the boundaries between Peru and Bolivia were empowered to establish the confines between the rivers Heath and Naverija. As the commissions have agreed upon the entire line of the said boundary, the frontier question between Peru and Bolivia is definitely settled; and this unfortunate cause of friction has been finally eliminated, in accordance with the policy of international peace and good will constantly pursued by my Government.

Accept [etc.]

F. A. PEZET.

File No. 723.2415/172.

No. 4.]

The Acting Secretary of State to the Minister of Peru.

DEPARTMENT OF STATE, Washington, May 13, 1912. SIR: I have the honor to acknowledge the receipt of your letter of the 8th instant communicating the gratifying information that a protocol was signed at La Paz whereby the special commissions to mark out the boundaries between Peru and Bolivia were empowered to establish the confines between the rivers Heath and Naverija, and that the commissions have already agreed upon the entire line of the said boundary.

The fact that the Governments of Peru and Bolivia have thus peacefully settled this difficulty, thereby removing a cause of friction between one another, and giving to the world a fresh proof of a cordial love of peace, is very gratifying to this Government.

Please be so good as to communicate to the President of Peru the congratulations of the President of the United States.

Accept [etc.]

HUNTINGTON WILSON.

1 See For. Rel., 1909, pp. 502-507.

SANITATION OF IQUITOS. EMPLOYMENT OF AMERICAN ENGINEERS; GOOD OFFICES OF THE UNITED STATES.

File No. 823.124/3.

The American Consul at Pará, Brazil, to the Secretary of State.

No. 146.]

[Extract.]

AMERICAN CONSULATE,
Pará, March 29, 1912.

SIR: I have the honor to transmit copy of an official communication received from the President of the Commercial Association of Iquitos, Peru, advising that the Peruvian Government has authorized the issue of a loan for 200,000 pounds, Peruvian, the proceeds of which loan is to be employed in providing the city of Iquitos with a new and more modern system of sewerage. The city of Iquitos is estimated to have at the present time a population of about 7,000 persons and it is situated at the head of the Amazon River traffic, being some 2,100 miles from Pará, Brazil. It occupies a very important traffic position, being the base of supplies for an immense surrounding territory, the inhabitants of which depend upon outside sources for a very large portion of their supplies. The accompanying statements will give a fair idea of the income of the central Government and movement of shipping at this port. Unfortunately my correspondent failed to give the name of the department of the supreme Government in Lima to which intending bidders should apply for more detailed and particular information, but I have no doubt that a communication to the consul at that place will secure what is wanted. I also note that he is not clear as to whether this loan is to be given out by the Peruvian Government or the authorities of the city of Iquitos.

1

I have [etc.]

File No. 823.124/2.

GEO. H. PICKERELL

The American Minister to the Secretary of State.

[Telegram.-Paraphrase.]

AMERICAN LEGATION,

Lima, April 12, 1912.

I am asked by the President to request the Department to recommend some one to undertake the sanitation of Iquitos: a work kindred to that of Colonel Gorgas in the Canal Zone.

File No. 823.124/2.

The Secretary of State to the American Minister.

[Telegram.-Paraphrase.]

DEPARTMENT OF STATE,

HOWARD.

Washington, April 18, 1912.

Although the Department will be glad to assist Peru in selecting a suitable expert, it desires to be able to assure the man recommended

1 Not printed.

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